Supporting Statement

SUPPORTING STATEMENT
1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
The SBSE Lead Development Center (LDC) was established in April 2002 as authorized in Delegation Order No. 193.
The LDC’s overall objective is to identify and deter individuals who promote abusive tax schemes and/or prepare
abusive returns. The LDC evaluates and develops information from internal and external sources. Additionally, we
conduct internet research to identify promoters/preparers and detect promotional material that market abusive tax
schemes through the Internet. As the national clearinghouse for promoter and preparer leads LDC’s role is to
conduct research and develop leads relationg to abusive transactions.

2. USE OF DATA
The collection of information is necessary to obtain leads for suspected avusive tax schemes and the tax return
prepares or individuals who promote such schemes.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
Privacy Act regulations and lack of secure electronic transmission does not allow individuals to provide information to
the Internal Revenue Service, through available information technology that would reduce burden.

4. EFFORTS TO IDENTIFY DUPLICATION
We have attempted to eliminate duplication within the agency wherever possible.

5. METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES
Not applicable

6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR
POLICY ACTIVITIES
Not applicable

Form 14029 (Rev. 4-2009) Catalog Number 51944B Page 4

Department of the Treasury–Internal Revenue Service

7. SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE INCONSISTENT
WITH GUIDELINES IN 5 CFR 1320.5(d)(2)
Not applicable

8. CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON AVAILABILITY
OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS,
AND DATA ELEMENTS
Periodic meetings are held between IRS personnel and representatives of the American Bar Association, the
National Society of Public Accountants, the American Institute of Certified Public Accountants, and other
professional groups to discuss tax law and tax forms. During these meetings, there is an opportunity for those
attending to make comments regarding Form 14242.
In response to the Federal Register notice (76 FR 57803), dated September 16, 2011, we received no comments
during the comment period regarding this form.

9. EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS
Not applicable

10. ASSURANCE OF CONFIDENTIALITY OF RESPONSES
Generally, tax returns and tax return information are confidential as required by 26 U.S.C. 6103.

11. JUSTIFICATION OF SENSITIVE QUESTIONS
Not applicable

12. ESTIMATED BURDEN OF INFORMATION COLLECTION
The burden for the collection of information is shown as an estimated 10 hours in the Taxpayer Paperwork Reduction
statement on the form 14242.
Responses
Time per Response
Total Burden
Form 14242

360

Form 14029 (Rev. 4-2009) Catalog Number 51944B

10 hours

Page 5

3,600

Department of the Treasury–Internal Revenue Service

13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
As suggested by OMB, our Federal Register notice dated September 16, 2016, requested public comments on
estimates of cost burden that are not captured in the estimates of burden hours, i.e., estimates of capital or start-up
costs and costs of operation, maintenance, and purchase of services to provide information. The comment period
ends November 15, 2011. As a result, estimates of these cost burdens are not available at this time.

14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT
Not applicable

15. REASONS FOR CHANGE IN BURDEN
This is a new collection. Delegation order number 193 grants the Abusive Transactions and Technical Issue/Lead
Development Center the authority to collect such information.

16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
Not applicable

17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE
See attached.

18. EXCEPTIONS TO THE CERTIFICATION STATEMENT ON OMB PRA SUBMISSION FORM
Not applicable

19. REASON FOR EMERGENCY SUBMISSION
This form is a critical part of the agencies effort to combat abusive tax promoters. It has been an active tool used to
receive important tips and information from the general public. We are seeking emergency clearance to ensure the
availability to the public as we bring this form in compliance with the OMB approval requirements of the PRA. An
solicitation of comments was published on September 16, 2011 (76 FR 57803).

Form 14029 (Rev. 4-2009) Catalog Number 51944B

Page 6

Department of the Treasury–Internal Revenue Service